On Jan. four, Square (NYSE:SQ) chief executive officer Jack Dorsey converted 100,000 Class B shares into Class A shares and then sold the Square inventory at an average price of $219.53.
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The stock sale is actually an element of planned sales by the billionaire co-founder. He soon began the weekly sales of 100,000 shares on Nov. 16. Since that time, he’s sold 700,000 shares through his latest divestiture on Jan. four.
To estimate the total sales, he probably generated $160 million in pre tax proceeds. Heck, even billionaires have bills to pay.
If you are thinking about selling based on these planned sales, do not. Square’s got lots of space to run in 2021.
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Square Stock Hits $300 Square stock is today trading at more than $240. Since Jan. one, the stock is up more than ten %.
And that is on top of the 245 % gains it achieved in 2020, something I had a suspicion would happen. Here’s what I wrote on Jan. 3, 2020:
Since Q3 2017, Square’s GPV [gross payment volume] from sellers with an annual GPV of over $500,000 grew 700 basis points to twenty seven %. Meanwhile, those sellers with a yearly GPV of less than $125,000 fallen 700 basis points to forty five %. At the same time, sellers with between $125,000 and $500,000 in GPV increased by 100 basis points to 28 %. Why is this critical? It implies that the company’s revenue has become a lot more diversified; it today benefits from payment processing across businesses of all the sizes.
How’s it doing a year later on this front?
In the third quarter of 2020, sellers with yearly GPV greater than $500,000 accounted for 30.6 % of the $28.8 billion in seller GPV. That’s up 270 basis points from the preceding 12 months. Sellers with annual GPV between $125,000 and $500,000 were $8.7 billion in Q3 2020, or maybe 10.1 % higher than in the third quarter a year earlier. These two groups accounted for 61 % of seller GPV within Q3 2020, 500 basis points higher compared to the preceding year.
Of course, sellers with yearly GPV under $125,000 still accounted for thirty nine % of general seller GPV, although it shows bigger companies’ acceptance fee, that is important to its ongoing development.
To get to $300 sooner in 2021, 2 things have to hold growing: Cash App, the finance app of its, and then Square Capital, its lending platform.